The Asia-Pacific Smart Airport Market size is estimated at USD 451.05 million in 2024, and is expected to reach USD 878.42 million by 2029, growing at a CAGR of 14.26% during the forecast period (2024-2029).
Air passenger traffic in the region has been increasing rapidly in the past few years, which has led to various modernization plans of airports to enhance their passenger handling capacities, as well as the operational efficiencies of the airports. These enhancements are anticipated to drive the growth of the smart airport market in the region during the forecast period. Furthermore, constructing new airports in the Asia-Pacific region, particularly in countries like China and India, will bolster the market's growth shortly.
Moreover, an increase in automation technologies is expected to revolutionize the entire process flow architecture in airports. Airports in the Asia-Pacific region are expected to make use of technologies such as artificial intelligence (AI), Internet of Things (IoT), and predictive analysis for a wide range of applications, from customer service to operational efficiency, which is further expected to drive the market growth during the forecast period.
Furthermore, according to Asia-Pacific Airports Magazine published by ACI Asia-Pacific, in the long term, Asia-Pacific will be considered among the top nations in the civil aviation market, with China leading the market, followed by India, Indonesia, and Japan. Moreover, the re-opening of the Chinese civil aviation industry signifies the beginning of a strong traffic recovery across the Asia-Pacific region.
Furthermore, there has been significant growth in the Asia-Pacific region regarding passenger, cargo, and baggage control. The substantial increase in the air traffic passenger in the area has also led to immense growth in the number of passenger baggage that the airports are handling, and this has led to many airports within the site to undergo construction to expand airport capacity to cater to growing air traffic passengers or install several innovative technologies for faster baggage processing/handling. For instance, in 2018, Siemens Postal, Parcel & Airport Logistics (SPPAL), a wholly-owned subsidiary of Siemens AG, announced that they had commissioned one of the most modern, high-performance baggage handling systems in the world at Incheon International Airport in South Korea. The new baggage handling system installed at the recently opened Terminal 2 combines innovative conveyor and sorting technology with intelligent software, enabling peak throughputs of almost 20,000 pieces of baggage per hour.
Thus, the increase in the usage of intelligent technologies in airports within the Asia-Pacific region for passenger, cargo, and baggage control will lead to a positive outlook and significant market growth during the forecast period.
China handles the most significant passenger traffic in the Asia-Pacific region, and it is expected to become the largest aviation market in the world in the coming years. According to CEIC data, air passenger traffic in China was reported at 251.713 million passengers in 2022. According to predictions by the International Civil Aviation Organization (ICAO), it is expected that the number of transport airports in China will reach around 450 airports. Moreover, to cater to the increasing passenger traffic in the country, the Chinese government is in plans to increase its construction of new airports significantly.
In addition, according to the Civil Aviation Administration of China (CAAC), the country has been witnessing significant progress in developing smart airports. In recent years, there has been considerable growth in industry-wide efforts which have been made to develop smart airports, highlighting data sharing, effective coordination, and intelligent operations across the country. The CAAC has been highly focused on developing safe, green, thoughtful, and passenger-friendly airports with little to no probability of causing operational delays and inefficiencies, costing time and valuable resources to the airlines and passengers. Furthermore, Chinese airports have already started implementing intelligent technologies on a large scale that enable a highly satisfactory customer experience and reduce any delays. For instance, in October 2021, Shanghai Airport Authority unveiled its new pilot project to develop multiple urban terminals in neighbouring cities. The airport authority will set the Suzhou Urban Terminal project jointly with the management committee of Suzhou Industrial Park. This new terminal will enable urban travelers to smart check in their luggage at the Suzhou City terminal and move to the Shanghai International Terminal via buses to reduce check-in times at the Shanghai International Airport.
Thus, the increase in the number of air traffic passengers coupled with the rise in the number of airport constructions within the region and the growth in the development of smart airports within the country will lead to a positive outlook and also lead to significant market growth during the forecast period.
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Air passenger traffic in the region has been increasing rapidly in the past few years, which has led to various modernization plans of airports to enhance their passenger handling capacities, as well as the operational efficiencies of the airports. These enhancements are anticipated to drive the growth of the smart airport market in the region during the forecast period. Furthermore, constructing new airports in the Asia-Pacific region, particularly in countries like China and India, will bolster the market's growth shortly.
Moreover, an increase in automation technologies is expected to revolutionize the entire process flow architecture in airports. Airports in the Asia-Pacific region are expected to make use of technologies such as artificial intelligence (AI), Internet of Things (IoT), and predictive analysis for a wide range of applications, from customer service to operational efficiency, which is further expected to drive the market growth during the forecast period.
APAC Smart Airport Market Trends
Passenger, Cargo and Baggage Control Segment Will Showcase Remarkable Growth During the Forecast Period
The passenger, cargo, and baggage control segment is anticipated to grow significantly in the Asia-Pacific smart airport market during the forecast period. The change is attributed to the increase in air passenger traffic at various airports in the Asia-Pacific region. Moreover, the increase in the number of baggage and cargo handled by multiple airports in the Asia-Pacific region will lead several airports to modernize themselves using smart technologies to ensure smoother airport operations, thereby driving market growth during the forecast period.Furthermore, according to Asia-Pacific Airports Magazine published by ACI Asia-Pacific, in the long term, Asia-Pacific will be considered among the top nations in the civil aviation market, with China leading the market, followed by India, Indonesia, and Japan. Moreover, the re-opening of the Chinese civil aviation industry signifies the beginning of a strong traffic recovery across the Asia-Pacific region.
Furthermore, there has been significant growth in the Asia-Pacific region regarding passenger, cargo, and baggage control. The substantial increase in the air traffic passenger in the area has also led to immense growth in the number of passenger baggage that the airports are handling, and this has led to many airports within the site to undergo construction to expand airport capacity to cater to growing air traffic passengers or install several innovative technologies for faster baggage processing/handling. For instance, in 2018, Siemens Postal, Parcel & Airport Logistics (SPPAL), a wholly-owned subsidiary of Siemens AG, announced that they had commissioned one of the most modern, high-performance baggage handling systems in the world at Incheon International Airport in South Korea. The new baggage handling system installed at the recently opened Terminal 2 combines innovative conveyor and sorting technology with intelligent software, enabling peak throughputs of almost 20,000 pieces of baggage per hour.
Thus, the increase in the usage of intelligent technologies in airports within the Asia-Pacific region for passenger, cargo, and baggage control will lead to a positive outlook and significant market growth during the forecast period.
China Dominates the Market During the Forecast Period
China held highest shares in the market and is expected to continue its domination during the forecast period. The growth can be attributed to the growing air traffic passenger in China in the recent years coupled with the increase in the number of new airport construction operations which will ultimately lead to market growth in the near future.China handles the most significant passenger traffic in the Asia-Pacific region, and it is expected to become the largest aviation market in the world in the coming years. According to CEIC data, air passenger traffic in China was reported at 251.713 million passengers in 2022. According to predictions by the International Civil Aviation Organization (ICAO), it is expected that the number of transport airports in China will reach around 450 airports. Moreover, to cater to the increasing passenger traffic in the country, the Chinese government is in plans to increase its construction of new airports significantly.
In addition, according to the Civil Aviation Administration of China (CAAC), the country has been witnessing significant progress in developing smart airports. In recent years, there has been considerable growth in industry-wide efforts which have been made to develop smart airports, highlighting data sharing, effective coordination, and intelligent operations across the country. The CAAC has been highly focused on developing safe, green, thoughtful, and passenger-friendly airports with little to no probability of causing operational delays and inefficiencies, costing time and valuable resources to the airlines and passengers. Furthermore, Chinese airports have already started implementing intelligent technologies on a large scale that enable a highly satisfactory customer experience and reduce any delays. For instance, in October 2021, Shanghai Airport Authority unveiled its new pilot project to develop multiple urban terminals in neighbouring cities. The airport authority will set the Suzhou Urban Terminal project jointly with the management committee of Suzhou Industrial Park. This new terminal will enable urban travelers to smart check in their luggage at the Suzhou City terminal and move to the Shanghai International Terminal via buses to reduce check-in times at the Shanghai International Airport.
Thus, the increase in the number of air traffic passengers coupled with the rise in the number of airport constructions within the region and the growth in the development of smart airports within the country will lead to a positive outlook and also lead to significant market growth during the forecast period.
APAC Smart Airport Industry Overview
The Asia-Pacific smart airport market is fragmented, with various players engaged in product differentiation to gain significant market share. The most prominent players within the market are SITA, Siemens AG, Leidos, Inc., Honeywell International Inc., and Vanderlande Industries B.V. SITA is one of the significant passenger processing and airport operations technology providers. Its technologies are present in major airports in countries like Australia, Japan, China, the Philippines, Thailand, Indonesia, and Vietnam, among others. Moreover, the increasing investments in R&D for developing new products by the companies are expected to enhance their geographic presence in the region during the forecast period.Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Amadeus IT Group
- SITA
- IBM Corporation
- Smiths Group PLC
- Siemens AG
- Vanderlande Industries
- BEUMER Group
- Indra Sistemas SA
- Daifuku Co. Ltd
- Wipro Limited
- T-Systems International GmbH
- Leidos
- Honeywell International Inc.
Methodology
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